Blog Post

What Does Spotify’s Funding Say About Freemium Music Fortunes?

Does Spotify’s new VC funding now suggest confidence that ad-supported music service can really work? Depends who you talk to…

Steve Purdham, CEO of ad- and premium-funded streaming site We7, is seeing it as a positive rather than as a victory for a competitor: “We see this as an outstanding announcement given the stage in the maturity of the ad-funded music market, and it is exceptionally positive for We7’s potential valuation going forward.”

But Forrester research director and music analyst Mark Mulligan cautions: “Spotify has made a great start but it hasn

3 Responses to “What Does Spotify’s Funding Say About Freemium Music Fortunes?”

  1. The ads on Spotify isn’t really that good. Most of them even have bad recording quality and don’t appear to have been given any real care. No wonder advertisers wouldn’t pay for something consumers don’t want to listen to.

    I am a bit surprised I haven’t heard any commercials for radio on Spotify. It would make sense that commercial radio stations would try to attract some Spotify listeners to their own online radio/ad supported streams with messages such as “don’t know what to listen to? listen to carefully selected tunes by Whoever on Radio Whatever!”

  2. These sites need to develop video elements that play mashed up advertising put to the music playing and which begin to creatively edit into it, tv clips, film clips.
    Randomly at first then interactively and creatively, with the site user not only able to listen and watch, but also to make, shape and sensationalise.

    Then people get to watch, and make, advertising. And like it….